OakNorth, a digital bank for entrepreneurs by entrepreneurs, has provided a £25 million loan to renewable energy company EAG Bioenergy to support the acceleration of its bioenergy asset acquisition strategy across the UK and Ireland.
Founded in 2019 by Chris Kerr, EAG Bioenergy specialises in the acquisition, operation and development of bioenergy, biomethane and biofertiliser assets.
Headquartered near Belfast, the company is backed by Vesper Infrastructure Partners and OrbeNovo Capital.
Vesper Infrastructure Partners is a value-add infrastructure investor focused on mid-market opportunities across energy, energy transition, data and digital, and social infrastructure.
OrbeNovo Capital is a specialist private equity firm investing in growth businesses and real assets across the energy and industrials sectors, with a focus on decarbonisation.
The £25m facility from OakNorth will support the scaling of EAG Bioenergy’s existing portfolio of bioenergy assets, including biogas and biomethane sites, through further acquisitions across the UK and Ireland.
These acquisitions will enable the company to expand its operational footprint and increase the production of renewable electricity and biomethane, contributing to the UK’s energy security and sustainability objectives.
The UK’s biogas and biomethane sector is forecast to grow at a compound annual growth rate (CAGR) of 13.7% to 2033, driven largely by the need for greater energy security and progress towards net-zero targets.
Peder Bratt, Director of EAG Bioenergy and Partner at OrbeNovo Capital, said: “This transaction represents another important step in executing EAG Bioenergy’s buy-and-build strategy across the UK’s fragmented biogas market.
"The assets being acquired are high-quality, operational sites with expansion potential that fit squarely within our investment thesis of building a scaled, diversified platform underpinned by long-dated, inflation-linked revenues.
"OakNorth’s ability to structure and deliver capital efficiently has been instrumental in enabling us to continue expanding our footprint at pace, while maintaining a disciplined approach to risk and value creation.”
Michael McGregor, Director of Debt Finance at OakNorth, added: “Biogas and biomethane play an increasingly important role in the UK’s energy transition, offering a reliable, low-carbon alternative to fossil fuels while supporting the circular economy.
"With the UK biogas and biomethane market forecast to grow significantly, demand for high-quality, well-operated assets is strong. EAG Bioenergy benefits from an experienced management team, strong institutional backing and a clear strategy, and we are pleased to support the business as it continues to build a diversified and scalable renewable energy platform.”
OakNorth provides £25m loan to EAG Bioenergy
